161.036 - Priority of payroll deductions.
Adjustments to the gross earnings of all city employees for all applicable statutory, mandatory, and voluntary deductions as may be authorized or directed by appropriate taxing authority, court order, the city auditor, or voluntary request of a city employee, shall be made in the following order of priority:
A. First, all applicable statutory deductions, including, but not limited to, federal, state, city of Columbus, and other local taxes and standard deductions required by the Public Employees Retirement System of Ohio or other approved public employee retirement system operated pursuant to state statute.
B. Second, mandatory or court ordered deductions in the following order:
(1) Child support payments ordered by a court of competent jurisdiction; and
(2) Wage-earner trusteeship payments ordered by a court of competent jurisdiction.
C. Third, voluntary deductions which shall be made only upon the written request of a city employee filed with the office of that employee's appointing authority or specifically authorized by ordinance of council and subject to the capacity of the city auditor's payroll system. These voluntary deductions shall be made in the following order:
(1) Rental of city-owned homes and other indebtedness to the city;
(2) Union dues to unions representing city employees in relations with the city;
(3) Municipal Credit Union accounts established by city employees;
(4) United States Savings Bonds purchased by city employees;
(5) Various supplemental insurances offered to city employees;
(6) Contributions to surviving spouses or estates of city employees where authorized by the employee's appointing authority; and
(7) Any other voluntary deduction as approved in accordance with this chapter.
D. Fourth, voluntary deductions for nonprofit tax exempt charitable organizations, or umbrella organizations or federations that are comprised entirely of nonprofit tax exempt charitable organizations, when all of the following requirements have been met:
(1) At least fifty (50) city employees have filed a payroll deduction card with both their appointing authority and the city auditor that a specific nonprofit tax-exempt charitable organization, or an umbrella organization or federation that is comprised entirely of nonprofit tax exempt charitable organizations, be the subject of a payroll deduction; and
(2) The organization, or all member organizations of an umbrella organization or federation, has received a currently valid ruling or determination letter from the Internal Revenue Service that recognizes the tax exempt status of such organization, or all member organizations, pursuant to Section 501(C)(3) of the Internal Revenue Code, as amended. That IRS ruling or determination letter must be filed with the city auditor for any such organization or member organizations before a payroll deduction is authorized.
(3) Such organization, or each member of an umbrella organization or federation, must:
(a) Be incorporated in the State of Ohio as a voluntary nonprofit organization registered and reporting annually to the Ohio Attorney General as required by Chapters 109 and 1716, Ohio Revised Code, 109.26 and 1716.02 and all necessary permits obtained from the city charitable solicitations board, and
(b) Be engaged in the delivery of health or human welfare in Franklin County, Ohio or a bordering county, and
(c) Be directed by an active board of trustees who serve without compensation, and
(d) Adopt and employ generally accepted standards of accounting and financial reporting and make an annual external audit by an independent public accountant available to the general public, except those agencies with an annual budget less than $25,000.00 for which a copy of IRS Form 990 will be sufficient, and
(e) Adopt and enforce a stated policy of non-discriminatory and equal employment opportunity under federal, state, and city requirements or laws with respect to its clients, officers, employees and volunteers, and
(f) Supply a payroll deduction card or form that meets the requirements of the payroll division, and a written description of the organization, and each member organization, that may be distributed to employees.
(g) In the case of umbrella organizations or federations, provide an option for designated contributions, or members to be excluded from contributions, and
(h) Agree in writing that the costs associated with providing access for payroll deductions will be paid by the organization, umbrella organization or federation, including but not limited to costs of data processing, software, and administrative costs to process the deduction and payment of the funds; and where the start-up costs exceed $5,000.00 a performance bond in that amount is required before the city shall begin to process such request for access to payroll deductions by city employees.
E. Deferred compensation plans are subject to the rulings of the Internal Revenue Service which require that the reduction be made to the gross earnings prior to the deduction of applicable earnings taxes. The city auditor shall make adjustments in gross earnings pursuant to the administrative regulations of any deferred compensation plans approved by city council.
In the event that all mandatory or voluntary deductions cannot be satisfied from a city employee's earnings in a particular pay period, the employee will have the sole responsibility of satisfying said obligations. Where the entire amount of any one deduction cannot be processed, no partial deduction will be processed.
Payroll deductions not fully satisfied at the time a city employee terminates employment become the sole responsibility of the former employee and the city assumes no obligation of their satisfaction.
The city shall be free and saved harmless from any and all claims that may arise in the event that any voluntary deduction is inadvertently not processed as a result of a clerical or computer error.
(Ord. 2043-93; Ord. 1132-2008 Attach. (part).)
